Friday, June 17, 2005

Nearly 75% of buyers expect to increase IT outsourcing this year, up from 64% last year. Just 7% say they'll decrease use of onshore outsourcers, and 5% plan to reduce use of offshore outsourcers. Most buyers like what they get: 78% are satisfied with their outsourcing deals, up from 74% last year.

Over the past year, ICG Commerce has seen an unprecedented level of interest in procurement process outsourcing. Many industry thought-leaders have launched comprehensive studies on the topic, reporting that performance has exceeded early adopter's expectations and are projecting 15 to 50% growth over the next three years. Trade media and educational organizations that have historically avoided the topic are now approaching it proactively. But perhaps the most direct evidence of a growing trend toward procurement outsourcing from ICG Commerce's vantage point is the 10X increase in the number of inquiries and RFPs received for outsourcing services.

While this increased interest in procurement outsourcing is clear and the value proposition can be compelling, many companies still seem to struggle to understand procurement outsourcing and determine the appropriate path forward for their own organization.